Business Surety Bonds, Built for Every Industry

An auto dealer bond, also called a motor vehicle dealer bond, is a type of surety bond required by nearly every state before a dealership can obtain or renew its dealer license. It protects consumers by guaranteeing the dealer will follow state motor vehicle laws, disclose accurate vehicle information, and avoid fraud or misrepresentation during sales. The bond does not protect the dealer from lawsuits; instead, it gives the state and consumers financial recourse if the dealer violates licensing rules. Bond amounts and terms vary by state, and most departments of motor vehicles require proof of this bond as a condition of opening or renewing a dealership.

A collection agency bond, sometimes called a consumer protection bond, is required by many states before a business can legally collect debts on behalf of others within that state. It ensures the agency follows fair debt collection laws and ethical practices, giving consumers a way to recover losses if the agency engages in unlawful collection tactics. States that require a collection agency license typically require this bond as part of the licensing process, and the required amount varies by state. Most agencies only pay a small percentage of the total bond amount as their premium, based on their credit and financial standing.

A freight broker bond, known as a BMC-84 bond, is a federal requirement enforced by the Federal Motor Carrier Safety Administration for all freight brokers and forwarders operating in interstate commerce. This bond must be filed before a broker's operating authority becomes active and must stay in force for as long as the business operates. It guarantees the broker will meet payment obligations to motor carriers and comply with federal transportation regulations under 49 U.S.C. 13904. The standard required bond amount is 75,000 dollars, and brokers can meet this obligation with either a surety bond or a trust fund agreement.

A janitorial bond, also called a cleaning service bond, is not typically required by state or federal law, but it is often required by commercial clients before they will sign a service contract. Offices, banks, medical facilities, and government buildings commonly ask for proof of bonding as a condition of hiring a cleaning company. This bond gives clients a way to recover losses if an employee of the janitorial company causes theft or damage while working on their property. Even though it is not legally mandated, having this bond in place makes a cleaning business more competitive when bidding on commercial contracts.

A mortgage NMLS bond is a surety bond required of mortgage loan originators and companies as a condition of state licensure through the Nationwide Multistate Licensing System. It satisfies the net worth or surety bond requirement set out under the SAFE Act, giving consumers and regulators financial protection if a licensee violates state lending laws. Bond amounts vary depending on the state and the size of the licensee's operation, with individual originators generally required to carry smaller amounts than larger licensed groups. This bond must stay current and in force for the life of the mortgage license, and lapses can result in suspension of licensing privileges.